Kentucky Business Formation Lawyers
Businesses are under increased pressure these days. Competition is heavier than it has ever been, and the laws and regulations within the commercial realm are more complicated than ever before. There are legalities involved with nearly every area of a business, from forming the right entity during the startup phase to signing a commercial lease for the location from which you want to operate to contracts and agreements between partners, shareholders, employees, and outside vendors.
The complexities of commercial law are nearly endless, and one legal misstep can be very costly to your operations. In fact, in some cases, legal issues can even threaten the business’s very existence. With so much at stake, it is absolutely essential for any type of commercial entity to have strong legal counsel that they can rely on when needed.
Whether your business is big or small, the attorneys at John H. Ruby & Associates are here to help with all your needs. We have several decades of experience providing counsel and representation for businesses of all types and sizes in Louisville and the surrounding Kentucky communities, and we are ready to go to work for you. We understand that no two businesses are exactly alike, and we take the time to listen and understand your unique legal needs, so we can customize the most practical, effective, and cost-efficient solutions.
If you are looking to form a business partnership or corporation in Kentucky, there are several options available to you:
- Limited Partnership (LP): Two or more people are required for this partnership. There must be at least one general partner, who is responsible for the debts of the partnership, and at least one limited partner. The limited partners are not personally liable for the partnership debts unless they are involved in management of the partnership.
- Limited Liability Company (LLC): An unincorporated business managed by members or managers. There is no personal liability for the company’s debts, and the LLC enjoys the tax benefits of a partnership rather than being taxed as a corporation (although they can choose to be taxed as a corporation when it is to their advantage to do so). An LLC is also a great asset protection option.
- General Partnership (GP): A business which is run by two or more people for a profit. Partners are personally liable for the debts of the business.
- Registered Limited Liability Partnership: A partnership registered with the state where the partners are responsible, with exceptions, for debts of the partnership.
- Sole Proprietorship: One person owns and operates the business and is personally liable for its debts. A sole proprietorship is the simplest way for an individual to start a small business, but as the business grows, they will most likely want to look at changing to a different entity that provides more structure and protection.
- Corporation: Complex in nature, the corporation is a separate entity with its own legal status apart from its owner or owners. The two main types of for-profit corporations are C corporations and S corporations. C corporations are more complicated entities with greater flexibility in ownership, but the main disadvantage of these types of corporations is double taxation; income is taxed at both the corporate and shareholder levels. S corporations have more restricted ownership rules, and but income from these corporations is passed through and taxed only at the shareholder level.
The filing requirements for each entity will vary, and there are also special rules regarding foreign corporations. Depending on what type of business you have, you may also need to obtain a permit from the Commonwealth in addition to procuring your local and federal licenses. Contact us to discuss your specific business needs.
Maintaining Your Business
Our firm is dedicated to ensuring your business runs smoothly. The business department at John H. Ruby & Associates caters to all your business needs, including:
- Asset purchase agreements
- Sale of business
- Dissolution of a business
- General legal counsel
Contracts and agreements govern virtually all types of business transactions. In generations past, verbal and handshake agreements used to be commonplace. But today, these agreements are almost always in written form. When a contract is prepared, it needs to be worded in a way that is clear, precise, and accomplishes all of the objectives of those who are a party to it.
Contracts that are vaguely worded and/or written in a way that is one-sided and favors one party over another are more likely to cause legal disputes, among the most common being a breach of contract allegation. A breach of contract occurs when one or more of the parties fails to uphold their obligations (as per the terms and conditions of the agreement).
We believe that the best defense against a contract dispute is an ounce of prevention. This means having the contract or agreement drafted by our experienced business attorney. This way, you can ensure that the terms and conditions of the contract are in keeping with your best interests.
If circumstances dictate that the document is drafted by someone else, at the very least, you should not enter into the agreement until we have reviewed it. Or better yet, have us negotiate the specific terms and conditions of the contract with the other parties involved. By having us draft, negotiate, and/or review your business contracts, you can significantly minimize the chances that a costly legal dispute will arise in the first place.
The attorneys at our firm are highly skilled business litigators who have represented companies both large and small and have helped resolve disputes between shareholders and business owners as well. Although we are highly adept inside the courtroom, we also understand that it is very often in our client’s best interest to avoid litigation.
Taking your case to court can be expensive, time-consuming, and not always the most practical way to handle a dispute. So, before we go down this road, we look at other avenues for resolving it. The most common forms of alternative dispute resolution (ADR) include negotiation, mediation, and arbitration. We work closely with you to explore each path and decide which would be most appropriate for your situation.
Speak with Our Experienced Louisville, KY Business Lawyers Today
Business is a complex area of law, and this is why you need an experienced attorney in your corner working hard to protect your interests and fight for you. Whether you are starting a business or ending one, need to negotiate a contract or agreement, are facing or considering business litigation, or simply need the advice and counsel of an experienced business attorney, our firm is here to help you. Contact us today at 502-895-2626 or message us online to schedule your free initial consultation.